The 16 Best Metaverse Stocks to Purchase and Invest
VR, which merges real and digital worlds, has long been used in science fiction films and novels. VR technology and computing power have grown exponentially since its inception, creating demand for this space and metaverse stocks.
The metaverse could be as vast as the internet, at least that’s the goal. Thus, metaverse equities have been popular with investors in the previous year. After all, the metaverse is supposed to become part of our life. It’s a virtual reality that works like the internet but lets us move around and interact with avatars.
The metaverse is a $1 trillion market, according to JP Morgan. Many companies are preparing for the metaverse era, though nobody knows how much it will change things.
What’s the Metaverse?
The metaverse is the internet’s future, according to tech CEOs like Mark Zuckerberg. What do they mean by that broad emotion, and is it that simple?
In an early February analysis, Credit Suisse defined the metaverse as “a more spatially immersive, appealing and frictionless internet which encompasses five basic components: infrastructure, technology, content, platforms or communities and payment mechanisms.”
Because the phrase refers to how we use technology rather than a specific sort of technology. The metaverse includes VR and AR (AR). VR and AR are not the only metaverses. Metaversal virtual worlds are accessible via game consoles and PCs.
A digital economy where users can create, buy, and sell things is the metaverse. Users can transfer virtual commodities between platforms in the metaverse’s ideal state.
What About Metaverse Cryptocurrency and Non-Fungible Tokens?
There is a tremendous possibility for blockchain technology and NFTs in the metaverse, even in its infancy. People’s social practices, interactions with brands, and digital asset trading can all be impacted by the metaverse. When it comes to representing ownership of digital assets, non-fungible tokens are the way to go.
Digital real estate, avatars, clothing, and other items can all be owned in this NFT-driven universe and transferred across services using a cryptocurrency wallet.
As cryptocurrency in the metaverse becomes the standard means of payment, its popularity and practicality are also on the rise. Over the previous 6 months, the total number of Metaverse and Crypto papers uploaded to the AlphaSense platform has increased by 17%.
The Top 16 Metaverse Stocks
As a result of the diversity of the metaverse, any investor can choose a stock there that suits their personal preferences and level of comfort with risk. Considering this potential for expansion, the following stocks in the metaverse are ones to keep a watch on:
Meta Platforms (FB) Meta is poised to boost and profit on the metaverse’s economic growth thanks to its 3.6 billion active users across platforms, upcoming AI supercomputer, proprietary VR headset, and to-die-for moniker.
Even though Zuck’s home company’s stock dropped by 40% in February after a disappointing financial report, that doesn’t mean the company is failing. But we must not overlook its enormous monetary resources.
With $16 billion in the bank and more to come once the company starts making money off of its slice of the metaverse, Meta is a major player to keep an eye on.
All vehicles, be they Dodges, Ferraris, or Rolls-Royce Phantoms, will require four tires, according to Nvidia Corporation (NVDA). Those tires come from a select few suppliers that are doing quite well financially.
Similarly, Nvidia provides the graphics processing units (GPUs) that will be required by nearly every device that enters or helps to develop the metaverse.
For instance, during the epidemic, the demand from gamers and crypto miners alone caused a 514% increase in share price. And now that the stock price has leveled out, maybe now is the time to buy before institutional demand increases for this metaverse company.
Roundhill Ball Metaverse ETF
At last, here’s a way for those who are interested in taking advantage of the metaverse’s opportunity but aren’t sure how to choose the right stocks to do so. You can let Roundhill Ball Metaverse ETF’s (METV(opens in new tab), $9.67) researchers and analysts do the legwork for you when it comes to investing in leading companies in the metaverse.
The company’s stated goal is as follows:
Roundhill thinks the Metaverse will replace the current internet and create a unified digital and physical environment.
Its goal is to provide investors with access to this emerging market by showcasing businesses building the backbone of the metaverse, such as studios making virtual environments and establishing new standards for content creation, commerce, and social interaction.
The majority of its holdings are high-cap businesses including Apple, Nvidia, Amazon, and Meta. But it also includes non-tech corporations like Nike (NKE(opens in new tab)) that are making moves connected to the metaverse and promising smaller companies.
Roundhill Ball Metaverse ETF is a way to mitigate some of the dangers of investing in the metaverse and its huge potential customer base.
Unity Technologies, a Software Company (U) After Valve Corporation, Unity Software Inc. is one of the best stocks to invest in for the metaverse. While Nvidia provides the hardware, it is widely believed that Unity will provide the software required to construct the metaverse’s actual Matrix.
Unity’s initial public offering in September 2020 appeared to be doomed from the start. A launch of a speculative technology stock in the midst of a worldwide pandemic? Is there no lockup period and employees can sell 15% of their stock on day one? A tense relationship with Apple in politics?
Investors, however, saw potential beyond the video game industry for Unity’s world-building tools and felt the company was cheap. By November 2021, the price of a U share had risen to three times its IPO price.
It’s bad news for bulls: the stock price has fallen back to its initial public offering (IPO) level (about $66). But the company’s growth continues to skyrocket, suggesting it is well positioned to construct the metaverse and satisfy HODLers (holders of value for the longest time).
The digitalization of the built environment is the primary emphasis of Matterport, Inc. (NASDAQ: MTTR), a spatial data firm.
Matterport provides a 3D data platform called digital twins to aid in the planning, construction, operation, advertising, and comprehension of physical locations. When compared to other programs that combine virtual and physical worlds, this one is at the forefront.
Matterport, Inc. (NASDAQ: MTTR) shares were given a Peer Perform rating by Gal Munda at Wolfe Research on August 16.
There were seven hedge funds with a $22.6 million position in Matterport, Inc. (NASDAQ: MTTR) at the end of the second quarter. In comparison, the prior quarter saw 12 hedge funds own a total of $52.6 million in long positions in the stock.
Match Group shares (MTCH(opens in new tab), $68.11) had a rough 2022. Its stock price has dropped by more than 48% since the beginning of the year. However, the corporation has enormous aspirations for the future.
After appointing a new CEO in May, the firm announced in its results report for the second quarter that it would be changing the leadership of its Tinder division.
Perhaps the metaverse is where MTCH stock might really shine. Match made its largest acquisition to date last year when it disclosed paying $1.73 billion for the Korean upstart Hyperconnect. That bought Match Group an avatar-based dating experience complete with “Single Town” a virtual location for meetings.
Recent organizational changes have resulted in reduced ambitions for MTCH’s proposed virtual dating environment and Tinder Coins, its in-app currency.
CEO Bernard Kim stated in the Q2 shareholder statement, “We will continue to analyze this space carefully, and we will consider moving forward at the appropriate moment when we have greater clarity on the entire market and feel we have a service that is well-positioned to succeed.”
In the second quarter results call for Match, he elaborated. I think it hasn’t been done fully logically, but I love the idea of virtual products and currency in Tinder,” Kim added.
“While it’s frustrating to delay the efforts, I think it’s incredibly crucial that Mark [van Ryswyk, Tinder’s chief product officer] and I produce the proper value proposition, so this can be a long-term revenue source.”
Despite a year-to-date share price drop of 78% and weak results for the second quarter, many market watchers are still optimistic about Snap (SNAP(opens in new tab), $10.41).
Analyst Justin Post from BofA Global Research explains that “difficult macro conditions triggered an advertising slowdown in many business verticals,” which contributed to the Q2 revenue and profit shortfalls. Post still recommends buying this stock.
Snap’s “leading user growth” (June on par with TikTok per SensorTower), “under-monetized surfaces” (Maps/Spotlight), and “long-term ARPU [average revenue per user] expansion opportunities” (Post’s emphasis) bode well for the company in the event of a sector rebound.
He continues by saying that with the recent drop, SNAP shares are trading at an appealing valuation.
But what about the multiverse of realities? Is Snap a promising opportunity to capitalize on the next wave of technology? It is, despite the fact that the company’s CEO has been quite vocal in his disdain for the metaverse, at least the metaverse as Mark Zuckerberg has envisioned it.
Snap, on the other hand, is still heavily investing in the research and development of augmented reality technology through its Spectacle smart glasses.
To rephrase, Snap may not be “meta” enough to play the metaverse game by meta’s rules, but it is succeeding in providing the AR glasses necessary to provide the augmented reality experience that consumers need.
Roblox (the game), which is owned by Roblox Corp, makes $3 million per day just from the Apple App Store. To put that in perspective, $45 billion, or 27.2% of the total mobile gaming industry’s income, flows through that one game.
The metaverse might not be fully formed yet, so who’s to say that Roblox won’t lose popularity overnight? The craze surrounding mobile games comes and goes.
Roblox’s addicting, user-created content is what sets it apart from other metaverse stocks, in our opinion. It’s a platform for making video games, sort of like if LEGO Star Wars and Instagram had a baby. Furthermore, Roblox hosts a thriving digital market where digital purses fetch prices in the thousands of US dollars.
So even if Roblox’s meteoric rise in popularity levels off, Roblox Corp has the resources and expertise to capitalize on its fifty million strong user base of highly valuable millennial consumers.
Alphabet, the parent company of Google (GOOGL(opens in new tab), $117.30), is an excellent illustration of a tech powerhouse that has positioned itself to be a winner in practically all facets of the metaverse.
Hosting virtual worlds in the cloud, which consists of many interconnected computers, is essential to the success of the metaverse. Industry research firm Synergy Research Group estimates that Google controls 10% of the cloud infrastructure market.
This makes it the third largest after Amazon.com (AMZN) and Microsoft (MSFT) (opens in new tab). Is the metaverse’s primary function to serve as a giant game? Starting in 2019, users have had access to Google’s Stadia cloud gaming service.
The company’s introduction of Google Glass was an early augmented reality (AR) headgear. That early release was far from a commercial success, but Google has continued to enhance its IP for augmented and virtual reality headsets since then.
The firm has been widely speculated to be developing an OS for augmented reality goggles. It purchased Raxium, a manufacturer of microLEDs for augmented reality and virtual reality headsets, in March. When it comes to fun, the firm already has YouTube VR running.
Analyst Justin Post from BofA Global Research adds, “We think there are considerable prospects for higher connected device usage and enhanced advertising surrounding AR glasses, and Google has inherent benefits given its advancedAI/ML capabilities” (Buy). Over the next two years, we anticipate an augmented reality product release.
Currently, Alphabet stock is down over 20% so far in 2022 due to difficulties like weaker-than-expected paid search income. The result is a chance to buy one of the top equities in the metaverse at a bargain.
TCEHY stock is listed in China, therefore potential buyers should be aware of the regulatory risks associated with this market before making a purchase. Thankfully, China has indicated that Tencent may resume app update publication.
The administration had already put a halt to it. Some of Tencent’s apps had been determined to violate users’ privacy and other rights in the past.
The potential of the metaverse is being investigated by Tencent. Tencent’s president, Martin Lau, noted during the company’s Q3 2021 conference call that the term “metaverse” lacks a concrete definition.
Tencent has the foundational technology and knowledge to create products that make the most of the metaverse possibilities. The firm’s past projects include both gaming and social network development.
Tencent is well-positioned to deliver the metaverse to its consumer’s thanks to the congruence of its social network, gaming, artificial intelligence skills, and hardware server architecture. It plays a significant role in Asian politics.
Gains can be made by diversifying an investment portfolio to include this region due to its rapid economic development.
Tencent has a lot of money and other resources to put toward the metaverse. This may be done by funding R&D, purchasing existing companies, or forming strategic alliances.
The Vuzix Corporation is quickly becoming one of the most prominent manufacturers of smart glasses and other products related to augmented reality technology. Their smart optics technology may prove to be particularly useful to the metaverse with augmented reality and virtual reality smart glasses.
Wearable technology that is capable of delivering experiences that are 100 percent immersive will soon be required of users as the metaverse continues to grow.
QUALCOMM, Incorporated (NASDAQ: QCOM), an IT firm, has invested extensively in the metaverse for the better part of a decade. The Snapdragon Metaverse Fund is backed by $100 million, and the Snapdragon XR1 and XR2 platforms are designed to handle the workload of VR and AR gadgets.
In addition, in September of this year, it formed a partnership with Meta Platforms to develop spatial computing using Snapdragon XR platforms and technologies.
On Oct. 24 HSBC analyst Frank Lee commenced coverage of QUALCOMM, Incorporated (NASDAQ: QCOM) shares with a Buy rating and a $180 price target. QUALCOMM, Incorporated (NASDAQ: QCOM) has been praised by Frank Lee, who believes the company is set up for future success.
The same month saw the corporation announce a $0.75 quarterly dividend, the latest in a string of 18 consecutive dividend increases. Therefore, it’s reasonable to consider the stock as an income investment.
In the second quarter, 71 hedge funds reported holding a total of $2.8 billion in long positions in QUALCOMM, Incorporated (NASDAQ: QCOM) stock. Bailard Inc. had 159,063 shares of the company’s stock, valued at a total of $17.9 million.
Many of the top hedge funds are vying for shares of QUALCOMM, Incorporated (NASDAQ: QCOM) and other “metaverse” companies including Meta Platforms, Inc. (NASDAQ: META), NVIDIA Corporation (NASDAQ: NVDA), and Roblox Corporation (NYSE: RBLX) in 2018.
Cloud computing and decentralization face a huge problem: data latency. When users click a link on their web browser, they frequently find themselves in this position, waiting for the subsequent page to download or for the process to take place.
The metaverse will want to work ahead of time to find solutions to these difficulties. Edge computing infrastructure as a service (IaaS) is a platform that Fastly operates. This platform brings servers and other equipment closer to the location where new data is being created.
A virtual environment that functions in real-time is simply impossible to create if edge computing and businesses like Fastly are not utilized.
On the 40th anniversary of the year it turned down Steve Jobs’ $5 million takeover offer, Adobe said at the Adobe Summit 2022 that 75% of the Fortune 100 were using the Adobe Experience Cloud.
Further, Adobe stated that it is prepared to “empower brands to succeed in the metaverse” with its cutting-edge business software suite. It has even released the entirety of its “Metaverse Playbook.”
Investors should be assured that Adobe will continue to thrive as dozens more of the world’s most successful businesses put their faith in the company to help them navigate the metaverse.
Himax Technologies (HIMX -1.40%) is a rapidly expanding hardware components company that is best known for its display-driver chips. These chips control the colors that are exhibited by pixels on screens. It also creates machine-vision and imaging semiconductors.
Investors keen on the metaverse should give this firm a serious look because its revenue increased by almost 75% year over year in the third quarter and its adjusted profitability increased by 1,278%.
Himax has a market cap of over $2.8 billion, and it trades at barely 5.8 times forecast earnings and 1.6 times expected sales.
If you’re following the stock price, you might be perplexed by the fact that it trades at such a low multiple despite the company’s impressive growth. Putting the company’s business and valuation in perspective is essential.
Himax’s performance has been notoriously erratic, with the company’s primary display-driver business fluctuating up and down with technology cycles in the television and mobile device industries.
The corporation benefits from increased sales and margins when better new display chips are introduced or when important new updates come along and drive sales of TVs, smartphones, and tablets. However, Himax’s sales and earnings typically drop significantly as the cycle progresses through its natural course.
The semiconductor industry might be poised to reap early benefits from the advent of a major new product category, with the possibility for augmented– and virtual-reality headsets to begin garnering popular usage.
In addition to a surge in interest for its display chips in automobiles and the impending mobile-hardware upgrade supercycle propelled by developments like 5G and augmented reality, this factor provides a further impetus for the company’s rapid expansion.
Although historically low sales and earnings multiples have been a red flag for Himax stock as they have coincided with the company hitting a cyclical peak, the current situation appears to be very different.
Also Read:-Top 16 Metaverse Games To Play In 2022!
ProShares Metaverse ETF
The ProShares Metaverse Exchange-Traded Fund (ETF) is another popular option (NYSE: VERS). This fund has an expense ratio of 0.58% and follows the metaverse-related companies that are most likely to succeed.
Its current graph isn’t nice, but I think it has potential. The VERS ETF is resting on double-bottom support; a rally to the low $30s would be welcome before proceeding to $37, where I expect it to meet resistance.
Over the course of time, the ETF may return to the $47 level of interest in the story revives. Many of its assets are also oversold because of the market correction; these include, but are not limited to, Advanced Micro Devices (NASDAQ: AMD), Electronic Arts Inc. (NASDAQ: EA), Lumentum Holdings (NASDAQ: LITE), Activision Blizzard (NASDAQ: ATVI), Apple (NASDAQ: AAPL), and Microsoft (NASDAQ: MSFT).